Geely invests RM1.3 billion in Aston Martin, shares jumped 25%

Auto News

Geely invests RM1.3 billion in Aston Martin, shares jumped 25%

Aston Martin's stock got one heck of a 25% jump following Geely's latest investment which resulted in Geely becoming the brand's third-largest shareholder to date.


The investment, totaling £234 million (around RM1.32 billion), doubled Geely's stake in the company as they are set to acquire approximately 42 million ordinary shares from Aston Martin's largest stakeholder, Chairman Lawrence Stroll's Yew Tree (Aston's current largest shareholder).

aston martin geely investment shareholder 2023

Additionally, Geely will subscribe to another 28 million shares at the same price, generating around RM65 million in cash for the British firm. This news propelled Aston Martin shares to trade at 231.2 pence (around RM21.09) per unit - a significant rise from their previous closing price of 267.8 pence (around RM20.01) on Wednesday, reaching as high as 288 pence (around RM22.68).

This investment represents a crucial step toward securing its long-term future and reducing its net debt, which stood at approximately RM4.78 billion at the end of March. Earlier this month, Aston Martin stated that 2023 would be a pivotal year for 'capital spending'.

aston martin geely investment shareholder 2023

With this newly added investment, Geely will hold a 17% stake in Aston Martin and will be entitled to one board seat, ranking behind Saudi Arabia's Public Investment Fund (PIF), Aston's second-largest shareholder.

Aston Martin anticipates improved profitability this year, especially with the commencement of deliveries for its next-generation sports cars in the third quarter.

 



Sep Irran Halid

Sep Irran Halid

Content Producer

Sep is a firm believer in the saying "Slow is smooth, smooth is fast" rather than "When in doubt, throttle it out". Drive safely, ride defensively, and most importantly, don't get hangry.


Related News


Comments

app-icon
app-icon
app-icon
View your Dream Cars
in the App
Download App Now